Post budget: experts fear depreciation of rupee

Chennai:

The Union budget announcements will push up the inflation and the rupee will depreciate by nearly 10 to 12 per cent in the next one year, according to an expert.

Speaking during the post budget analysis organized by Hindustan Chamber of Commerce here, noted auditor M R Venkatesh predicted that the budget would result in inflation and the current account deficit would be bigger.

He said as Reserve Bank of India would not bring down interest rates, the rupee will fall making it difficult for the industry to repay in foreign exchange.

Venkatesh said that if the Finance Minister had made any announcement of devaluing the rupee, the budget would have been a reformist package. Now it will be market, which will devalue the Indian currency, he added.

Tax expert and advocate K Vaitheeswaran termed the budget as a Robinhood budget, which identifies people who can pay the duties.

Interestingly, he also termed the budget as a gender budget, which has allocated Rs 1,000 crore for all woman banks. He also hit out at the government stating that on one hand it worries about gold imports but on the other relaxes the rules to import gold.